The money supply plays an important role in macroeconomic analysis, especially in choosing an appropriate monetary and fiscal policy. Considerably, I have yet to come across theoretical work done on this topic (analysis of money supply and its impact on other variables, e.g. inflation, interest rate, real GDP and nominal GDP). However some other topics similar to this have been addressed by AL-SHARKAS, Adel, where he uses the same technique and models on the topic “output response to shocks in interest rate, inflation and stock returns”. His work investigates the relationship between Jordanian production and other macroeconomic variables such as inflation, interest rate and stock returns. His paper uses Lee's (1992) VAR approach method to analyze the dynamic relationship and interaction between variables. The IRF and FEVD of the VAR model are calculated to investigate the interrelationships within the system. The empirical results indicate that the interest rate and inflation are weakly negatively correlated and real stock returns and inflation are weakly positively correlated for all leads and lags are negatively associated. Furthermore, the response of output (IPG) to shocks in stock returns (R1) is strongly positive until the first 6 periods, after which the effect almost disappears. This indicates that the relationship between stock returns (R1) and real activity (IPG) is positive and inflation has a negative impact on the IPG (Adel A. Al-Sharkas 2004). MONEY SUPPLY GROWTH AND MACROECONOMIC CONVERGENCE IN ECOWAS by the WEST AFRICA MONETARY AGENCY (WAMA) is a similar article to this topic. Where the relationship between money supply, the main macroeconomic indicator analyzed for West African countries, includes...... half of the paper ......uses Lee's (1992) VAR method to analyze the relationship and dynamic interaction between variables. The IRF and FEVD of the VAR model are calculated to investigate the interrelationships between money supply shocks and inflation in the system. The empirical relationships based on the VAR test conducted for the period from 1990 to 2009 show that, money supply and inflation are weakly positive. correlated, Money supply and interest rates are very weakly and negatively correlated, Money supply and real GDP are strongly positively correlated, Money supply and nominal GDP are strongly negatively correlated. Furthermore, inflation's response to money supply shocks is very weakly positive or has no effect at all as it is consistently constant. This indicates that the relationship between money supply and inflation is not too significant.